The Nifty50 rose 2.80 points, or 0.02 per cent, to 15,692. It hit a high of 15,789 and a low of 15,644 during the session. Realty stocks were the biggest gainers while IT names ended in the red.
“The sideways trend on the line chart is clearly visible as Nifty has moved in a band of 15,870 to 15,680 since June 15, hinting that the market is in a directionless phase, where projections in any direction are bound to fail as sideways phases will be dominated by volatile moves,” said Mazhar Mohammad, Chief Strategist, Chartviewindia.in.
A movement of 300 points on either side will lead to a breach of either the support or resistance, giving direction to the market. Until that level is achieved, volatile moves will be the norm, believe analysts.
“Therefore, traders are advised to remain neutral on the index till it witnesses a breakout on either direction by shifting focus towards select pockets of opportunities,” Mohammad said. .
On the hourly charts, Nifty opened on Monday with a gap up and attempted to scale above key moving averages. However, it couldn’t sustain in the higher territory and tumbled down in the second half of the session. On the downside, the index once again tested the swing low of 15,635 where the bulls offered support.
“Structurally, Nifty is forming a triangular pattern on the hourly chart and is expected to breakout on the upside. Thus, on the higher side, the 15,750-15,790 zone will be the key hurdle zone to watch out for. Beyond that, the index is expected to march towards the subsequent barrier i.e. 15,900-15,915. On the downside, the daily lower Bollinger Band and lower end of the reverse rising channel are also offering support,” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by .
Nifty on the weekly chart formed negative candles with narrow range movement in the past couple of weeks and similar movement continued till now. If support of the last two weekly low breaks on the downside at 15,635, then the next support of 10 week EMA could come into play at 15,515, noted analysts.
